What companies need to know about NFT

In mid-March 2021, the art and finance world was stunned when a digital artwork by artist Beeple was auctioned for $ 69 million. The digital image was a non-fungible token (NFT), a relatively new type of asset that bears some similarities to cryptocurrencies such as Bitcoin and Ether.
While NFTs have gained media attention lately and were even featured in a song on Saturday Night Live, it can still take a little time to understand how NFTs work, how to create them, and why they sell for so much money.
The basics of non-removable tokens
Before explaining non-fungible tokens, it is best to start with the basics of fungible tokens. Fungible tokens like Bitcoin and Ether are digital assets protected by blockchain technology that are fungible and have properties similar to those of a currency. For example, if a friend allows you to borrow 1 Ether, you can send back the same amount, but it does not have to be the same token as the one you sent to your friend.
On the other hand, non-fungible tokens are unique pieces of code that cannot be replicated and have no traditional meaning associated with them. NFTs are also protected by blockchain technology, but each NFT asset is unique. Just as the original painting by Vincent Van Gogh is one of a kind and could be worth millions of dollars at auction.

Wide range of NFTs

To date, companies and creators have developed a wide range of NFTs, including:
Digital Artwork: Many visual artists have put their art up for sale in NFT form.
Digital Music: The rock band Kings of Leon, for example, released a new album as NFT and made over $ 2 million in sales.
Video Clips: The NBA Top Shot marketplace features clips of famous players such as LeBron James and Steph Curry “slam dunks”, available for purchase as NFS.
Virtual Property: Plots of land in virtual worlds are NFTs that can be purchased.
Digital Pets: One of the earliest NFT offerings was the CryptoKitties game, which allows you to breed one-of-a-kind digital cats.
Why NFTs Soared in Price
NFT’s asset value rose sharply in the past year for two reasons. First, many NFT purchases are speculative and some people buy NFTs to quickly resell them at a higher price. For example, clips for the NBA Top Shot were priced at $ 4,000 and then resold later for over $ 200,000.
Another reason is that some people want to participate and own part of the story, like Vinyesh Sundares, who bought the aforementioned Biple art for $ 69 million.
“This NFT is a significant piece of art history,” Sundares told CNBC. “Sometimes it takes a while for everyone to grasp these things. I’m fine with that. I had the opportunity to be part of this very important shift by understanding how art has been perceived over the centuries.” …
How companies can create and sell NFTs
Given that NFTs have become more popular in 2021, there are many benefits for any company or digital art or product creator to test with NFTs. Not every company needs to create an NFT, but if you are a visual artist, musician, or game designer, it is worth considering developing and selling an NFT.
If your business decides to produce NFTs, they first need to be “minted.” Let’s say you want to sell an NFT version of your photograph. All you have to do is use a do-it-yourself service such as OpenSea, Rarible or Mintbase to convert Image in NFT Some member-only platforms such as SuperRare can also help creators create an NFT You will have to pay a commission (usually on air) to complete the coinage, which can cost over $ 1,000.

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